Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.5% APR fixed rate. Monthly payment: £304.38. Option to purchase fee £10 payable. Total cost of credit: £6,272.80. Total amount repayable: £18,272.80.
Car Finance 247 Limited is a credit broker, not a lender.
Refinancing your car involves taking out a new finance agreement to pay off your existing loan and keep your current car. You might want to do this if you think a new deal could save you money or if your needs have changed.
Or, if you’re coming to the end of a PCP agreement and would like to keep your car, refinancing could turn the final balloon payment into more affordable monthly payments.
If your credit score has improved or you didn’t shop around for your original deal, you may be eligible for a more competitive option. However, refinancing might not be the right choice for everyone and switching to lower payments might not be good value in the long term.
You should always take note of the total amount payable on the loan, and bear in mind that spreading your outstanding loan over a longer term can reduce the monthly payment but may increase the total amount of interest payable.
See if you could lower your monthly repayments by spreading the cost over a new finance term that better suits your budget.
Turn your PCP balloon payment into more affordable monthly instalments, making your final lump sum easier to manage.
If your credit score has improved since you took out your original agreement, you may be eligible for a more competitive interest rate.
Spreading your outstanding loan over a longer term can reduce the monthly payment but may increase the total amount of interest payable.
If you’re thinking about refinancing, it’s a good idea to find out if there are any early repayment charges.
Eligibility, rates, and terms depend on your credit history and are subject to lender checks.
Run an illustrative quote to see how much you could save*
Tell us about your current finance: Start by answering a few simple questions about yourself and your vehicle.
Get a personalised decision - We compare 100's of products from our wide panel of lenders to see if we can find a deal that could work better for you.
Switch to your new deal – If you decide to go ahead, we'll aim to seamlessly transfer your balance to a new agreement with terms to suit your needs.
To refinance your car, you need an existing finance agreement that still has time and balance left to run. Lenders set their own criteria, but most require the following:
Your age: You must be 18 years or over.
UK resident: You need to be a UK resident.
Income: You must have a regular income to show you can afford the repayments.
Criteria does vary between lenders, but lenders typically look at:
Car age: no more than 15 years old at the end of your new agreement.
Mileage: must be under 120,000 miles when your new agreement starts.
Driving license: you must have a valid, full UK, EU or provisional license.
Affordability: the new payments must be affordable. Lenders will look at your income, employment, and financial commitments you already pay.
Credit history: applicants with bad credit, defaults, CCJs or no credit history could still be considered.
Car equity: lenders prefer your car’s value covers or exceeds your current settlement figure.
Finance type: lenders offer refinance for Personal Contract Purchase (PCP), Hire Purchase (HP) and finance lease agreements.
Criteria correct as of September 2026. Refinancing is subject to status, affordability and individual lender criteria.
There can be, and they decide whether refinancing is worth doing. Here are two to check before you commit.
Early settlement fee
Your current lender may charge a fee for ending the agreement early. Ask them for a settlement figure, which will include any fee, so you know the full cost of switching.
Interest you have already paid
Interest is weighted towards the start of a finance agreement, so you will have paid more of it in the early years than you might expect. Settling early does not refund that.
Compare three figures:
If the new total is lower than the current total plus the settlement fee, refinancing saves you money. If it is not, staying put is the better option.
A longer term reduces your monthly payment but increases the total interest you pay, so a lower monthly figure does not always mean a lower overall cost.
If your credit score isn’t perfect, refinancing could still be an option. We work with a panel of lenders who consider a range of circumstances, including applications from people with less-than-ideal credit histories.
Having a lower credit rating doesn't automatically rule you out of refinancing, but it can influence the rates and terms available to you. Any offers will depend on your individual circumstances and the lender’s criteria.
The same applies if you're in negative equity – when the remaining balance on your current finance agreement is more than your car’s current market value. Some lenders may still be able to offer a new deal based on what you owe rather than the value of the vehicle. However, this could limit your options and may result in higher interest rates or different terms.
Credit is subject to status.
“Refinancing your car could be a great option if you're looking to lower your monthly payments or secure a better interest rate. This also gives you the ability to keep your current car.”
At Car Finance 247, used car finance is all about helping people improve their everyday lives. We understand that building a good credit score isn’t always easy, and we believe that people should not be penalised for past mistakes. Unfortunately, some individuals find themselves trapped in a cycle, hindered by the lack of a vehicle, impeding both their commute to work and their ability to improve their credit score.
Plus, you’ll have a dedicated account manager on hand to help guide you through the process, so there’s nothing to worry about.
Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we’ll work to find you the best deal from our panel of lenders, even if you have bad credit.
We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We will be paid a commission for providing our services and this commission may be a fixed amount or a percentage of the amount borrowed. The interest rate you pay is directly linked to the amount you are borrowing and your individual credit status.
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